LONDON (dpa-AFX) - BT Group Plc (BT_A.L, BT) estimates that the price changes in today's Ofcom Wholesale Local Access review or WLA draft statement, for the directly charge controlled products, will have a year on year adverse financial impact on Openreach's revenue and profit in 2018/19 in the range 80 million pounds - 120 million pounds.
BT noted that there will be further year on year impacts on Openreach, resulting from price reductions to the directly charge controlled products, in each of the successive two financial years in the range of low to mid tens of millions of pounds. Additionally, Openreach's cost base will increase as a result of meeting the more demanding minimum service levels required in WLA markets.
BT said that Today's statement from Ofcom gives the company certainty on the pricing of key products for the next three years.
BT anticipates a further adverse financial impact on Openreach's revenue and profit as a result of market pressure on the wholesale prices of other products not directly charge controlled in the WLA draft statement.
BT said it can now look forward and get on with the job of making fibre-to-the-premises broadband available to three million homes and business by the end of 2020.
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